Has anyone sent for the alex green program that can find you unlimited private lenders. He says that they do not need to pull credit reporec… . Also has anyone gone as far as to go through the hurdles of getting corperate credit to fund deals. :banghead
Hard Money Loan:
20% of total purchase amount from borrower.
Borrower uses cash for repairs, carrying costs etc.
Lender holds 1st lien on property.
6-month loan maturity at 14%.
Sound Good? :deal
i have terrible credit 443 whats the other alternative. Wholesale deals . :banghead
Vug…
I am attempting to do just that as we speak…how about you?
Markie Mark this is nothing like the hard money I offer. I wouldn’t even say its typical of other hard money. My company loans up to 80% of the ARV. We loan purchase price, rehab money and closing costs. Its all based on credit score. And as far as 20% down is nowhere near what we can do for people. I met with a gentleman today who is “real world no money down” not “carlton sheets no money down.” My interest rate is 14% so you are correct about that but it has a one year term not six months. And you would have to be the worst investor/rehabber ever to take a loan like this to term. We run credit checks not to satisfy our own minds but to make sure our investors can re-fi out as soon as the rehab is done.
I am in the process of developing business credit separately from my personal credit but, although my personal credit isn’t too bad, I’m developing both in a two pronged approach to maximize potential for success.
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Personal Credit – there are a lot of outfits online that can help get rid of credit report inaccuracies, inquiries, negative stuff, help build new credit lines, and generally steer you in the right direction to get good FICO scores. Obviously, the best way to build personal credit is to consistently pay your bills on time BUT there are also a lot of techniques and secretes that can be used to help you climb the ladder faster and higher. This is where the credit repair experts come in. But don’t get roped into some real expensive plan – it should only cost a few hundred dollars. Good results are typically seen within 45 to 180-days but is subject to each person’s individual issues.
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Business Credit – can, and should, be developed separately from your personal credit whenever possible. You can make major headway over a period of just six to twelve months (with very large cash lines of credit after 2-yrs). However, it must be done the right way or you can do more harm than good. You must first setup your company correctly (entity structure, physical address, business phone that matches the address when directory assistance is used, State, County, & City business licenses, business web domain & email, a CORRECTLY filed account with Dunn & Bradstreet, balance sheet, business plan, etc). Then you develop trade lines of credit with companies that report to D&B (& other business credit reporting companies) BUT only companies that don’t require personal guarantees (there are a lot more of these companies out there than you may think). You pay the bills early every month and after a relatively short period of time you have a very good D&B Paydex score (>70 or 75). This puts you in a position to get small cash lines of credit from certain banks w/o a personal guarantee. You keep working it until you have $50K to $100K in cash lines. Larger cash lines of credit (>$100K) are not usually doable until the company is at least 2-years old. I’m using a business credit builder service ($2500 to $4500 is typical – they’ll finance) as it takes less time to achieve your business credit goals but there are DIY programs online for $400 or $500 (I have no experience with these).
You can obtain a $150K business startup loan right away if you’re willing to give a personal guarantee and your FICO score is 680 or higher. So although it’s ideal to build business credit separately don’t rule out the use of personal credit/guarantees to move you up quicker when it’s appropriate to do so (sometimes you just can’t do certain deals w/o the PG). Most HMLs are pulling personal credit reports now days (but not requiring personal guarantees) so if I were you I would start with personal credit repairs or do both B & P at the same time while working the wholesale end of it.
If you develop even small business cash lines of credit in addition to trade lines, it comes in real handy if you buy a property using an HML and need funds to start repairs (the HMLs won’t usually give you the repair money up front – they pay out on draw system as work is completed).
Hope this answers some of your questions.